Waterways Continuing Problem 21 Because most of the parts for its irrigation sys
ID: 2404606 • Letter: W
Question
Waterways Continuing Problem 21
Because most of the parts for its irrigation systems are standard, Waterways handles the majority of its manufacturing as a process cost system. There are multiple process departments. Three of these departments are the Molding, Cutting, and Welding departments. All items eventually end up in the Package department which prepares items for sale in kits or individually.
The following information is available for the Molding department for January.
a) Prepare a production cost report for Waterways using the weighted-average method. (Round unit costs to 2 decimal places, e.g. 2.25.)
Work in process beginning: Units in process 22,000 Stage of completion for materials 80% Stage of completion for labor and overhead 30% Costs in work in process inventory: Materials $168,360 Labor 67,564 Overhead 17,270 Total costs in beginning work in process $253,194 Units started into production in January 60,000 Units completed and transferred in January 58,000 Costs added to production: Materials $264,940 Labor 289,468 Overhead 60,578 Total costs added into production in January $614,986 Work in process ending: Units in process 24,000 Stage of completion for materials 50% Stage of completion for labor and overhead 10% Prepare a production cost report for Waterways using the weighted-average method. (Round unit costs to 2 decimal places, e.g. 2.25.) WATERWAYS CORPORATION Molding Department Production Report Equivalent Units Physical Units Conversion Costs Quantities Materials Units to be accounted for Work in process, Jan. 1 Started into production Total units Units accounted for Transferred out Work in process, Jan 31 Total unitsExplanation / Answer
Solution a:
Solution b:
Computation of Equivalent unit of Production - Weighted Average (Molding Department) Particulars Physical Units Material Conversion (Labor + Overhead) Unit completed & Transferred out 58000 58000 58000 Closing WIP: 24000 Material (50%) 12000 Conversion (10%) 2400 Equivalent units of production 82000 70000 60400Related Questions
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